Question

I'd appreciate a step by step calculation versus just the answer. I will comment if I don't understand before rating. TY!

An iPhone made in the U.S. sells for $353.  Suppose the exchange rate of U.S. dollars for euros changes from $1.00 = €0.85 to $1.00 = €0.75. What has happened to the cost of the iPhone in the European Union? That is, what is the change in the cost of the iPhone for consumers in the European Union in euros? Provide your answer in euros rounded to one decimal place. Use a negative sign "-" for negative values. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

Answer 1

Price of iPhone in US = $353

Initial exchange rate between US dollar and Euro is as follows -

$1 = 0.85 euros

Converting the price of iPhone in euros

Initial price of iPhone in European Union = $353 * 0.85 = 300.05 euros

The initial price of iPhone in European Union is 300.05 euros

New exchange rate between US dollar and Euro is as follows -

$1.00 = 0.75 euros

Converting the price of iPhone in euros

New price of iPhone in European Union = $353 * 0.75 = 264.75 euros

The new price of iPhone in European Union is 264.75 euros

Calculate the change in the cost of the iPhone for consumers in the European Union in euros -

Change in cost = New price of iPhone in European Union - Initial price of iPhone in European Union

Change in cost = 264.75 euros - 300.05 euros

Change in cost = -35.3 euros

Thus,

The change in the cost of the iPhone for consumers in the European Union is -35.3 euros.